Government opens import permits for Betel Nut, Peas, and Pepper for industrial use

KATHMANDU: The government has opened import permits for betel nut (supari), peas (kerau), and pepper (marich) for the current fiscal year 2082/83, allowing production-oriented industries to import these commodities strictly as industrial raw materials.

The decision was taken through a ministerial-level approval by the Ministry of Industry, Commerce and Supplies. According to the ministry, imports of peas, betel nut, white pepper, and black pepper will be permitted exclusively for industrial use and not for direct sale in the domestic market.

The ministry has made it clear that only production-based industries will qualify for the import facility. Imported commodities must be used solely as raw materials in manufacturing processes. Industries will be required to undergo scrutiny by the Department of Industry, which will assess raw material availability, actual industrial need, justification for imports, and the volume required. Authorities will also verify whether the imported raw materials are being used strictly for industrial purposes.

Separate and additional conditions have been introduced for newly established industries, reflecting the government’s attempt to prevent misuse of import permits under the guise of industrial production.

The move comes amid mounting pressure from food and agro-based industries, which have been facing acute shortages of essential raw materials. Industrialists had repeatedly urged the government to reopen imports of peas and pepper, arguing that domestic production is insufficient to meet industrial demand. Despite the import ban for retail sales, these commodities are widely used in processed food manufacturing.

Each year, the government opens imports of selected restricted commodities by publishing notices in the Nepal Gazette and fixing quotas specifically for industrial use. This fiscal year, delays in opening imports had triggered complaints from businesses, with industry associations warning that restrictions were fueling illegal cross-border trade and smuggling.

Under the existing “Procedure for Import of Betel Nut, Peas and Pepper as Industrial Raw Materials for Production-Oriented Industries, 2078,” the government allows imports only after industries complete a detailed approval process. The procedure mandates inter-agency coordination and strict monitoring of end use.

Following the COVID-19 pandemic, Nepal imposed wide-ranging import restrictions after foreign exchange reserves began to shrink sharply. Although the country’s foreign exchange position has improved in recent months, the government continues to manage imports cautiously by allowing only essential and production-linked goods in limited quantities.

For each import application, the Department of Commerce, Supplies and Consumer Protection must recommend the required volume after verifying industrial demand. Final approval is granted only after confirming that imports will substitute domestic shortages rather than distort local markets.

In Nepal, industries producing instant noodles, spices, processed foods, and gutkha are the primary consumers of peas, pepper, and betel nut. Nutritional food manufacturers also rely on these commodities as key raw materials. Industry representatives argue that without timely access to imported inputs, production costs rise, supply chains weaken, and competitiveness in both domestic and export markets is affected.

While imports for direct market sale remain prohibited, the government maintains that controlled industrial imports are necessary to sustain manufacturing output, protect employment, and prevent informal trade channels from expanding.